March 24, 2007

Linear Air

From the Lincoln Journal:


Lexington-based Linear Air last week announced plans to expand service having received certification from the French government to offer charter flights to the French West Indies, including St. Bart's.

The St. Bart's certification places Linear Air on a short list of U.S.-based operators with such a privilege. The certification expands the Linear Air Caribbean service area and offers travelers an affordable private air alternative to St. Bart's, where the landscape demands a smaller aircraft due to mountainous terrain and shorter runways.

Linear Air, which flies private jets out of Hanscom Field, also announced the closing of a $2.5 million deal with several new investors, including European private equity firm COFRA Group. The private air-taxi operator has now raised a total of $6 million to fuel its plan to be among the first to begin flying the Eclipse 500 Very Light Jet (VLJ) later this year.

March 23, 2007

Skybus Update

From the Columbus Dispatch:


Skybus Airlines, which had hoped to start flying in March or April, is at least two months from beginning operations. The company is waiting for certification from the Federal Aviation Administration, which is expected within five weeks, said Bill Diffenderffer, Skybus CEO.
"We?re heading toward flying in May," Diffenderffer said this week. "We went back and forth about announcing our routes earlier, but we decided it would just give our competitors a needless advantage since we can?t sell tickets until we get FAA approval."

Packages

On March 11th, I requested the two packages mentioned numerous times in City Council Minutes prepared by IMG, along with the help of the City of Worcester and MassPort, to sell an airline of ORH. In addition I requested all reports filed with the DOT (Department of Transportation) regarding the monies spent by the airport on the Small Community Air Service Grant.

As of today (March 22nd), I have received no information regarding my requests.

March 22, 2007

100 Days

100 Days until the end of the current operating agreement with MassPort.

March 20, 2007

Rockford Airport Director



After posting the February results yesterday by our model airport, Rockford, I e-mailed RFD Airport Director, Bob O'Brien, and asked if he would answer 5 questions for this blog's first, a "blog interview". He agreed and by the end of the day, within 6 hours from my initial e-mail request, here are his answers.






  1. How important is “Free Parking” when marketing RFD? [Bob O'Brien] Its very important when you consider the “total” cost of the “aviation experience”, which for most means either driving into Chicago O’Hare or catching the bus. “Time is money”, as the saying goes, and in the past, travelers have been willing to forgo the convenience (and time saved) of driving their car into O’Hare in favor of the bus, largely because of the $13 to $26 a day parking costs. Insomuch as people are “aware” of free parking, it’s a 2 run-homer! It truly helps “differentiate RFD” from the competition—not just O’Hare, but also the 5 other “competing airports servicing the region.

  2. You have not only have had good results with Allegiant but you have been able to expand with them. What it the most important thing that Allegiant is looking for when dealing with you?[Bob O'Brien] Allegiant, like every other airline considering the possibility of servicing “any other community”, wants “proof positive” that your airport can attract (and retain) passengers in sufficient numbers to make them successful at your airport, knowing full well that “air service” is extremely well established at adjacent airports. Said another way, “talk is cheap, action is king”!

  3. How has the addition of Chicago to your name helped attract passengers?[Bob O'Brien] By itself, the name change is meaningless. Its what you do with the potential name change. We used the name change to help the airline understand that RFD is in “close proximity and could function as a viable alternative” to the far better known and presumably more congested, competing airports, i.e. O’Hare in our case, possibly Boston for you.

  4. You have a great website how has the it worked in attracting passengers to RFD?[Bob O'Brien] It’s a tool; but like any other tool its what you do with it. Our website, like everyone else’s is a place to “research” the airport situation. However, unlike most, we use it to sign up potential travelers into our regionally sponsored “MilesAhead” program. This “club” is now 30,000 members strong—just imagine what we are able to do to motivate and otherwise stay in contact with “our customers”.

  5. Lastly how has WiFi worked in attracting passengers to RFD?[Bob O'Brien] We have Wifi in the terminal. I don’t think at this point it “attracts” much, by itself. Its more a matter of RFD living up to our “hassle-free, low cost/high value airport experience” montra in both word and deed. In time, things like wifi and other services we provide will help to better position and destinguish RFD as “a viable alternative”.

I want to take this opportunity to thank Bob and I can see why RFD is having the success that it is having right now. In the future we can save alot of money on consultants, by merely following the example of other secondary airports like RFD and Stewart, who are achieving a level of success facing the same exact challenges as ORH .

Why Allegiant Left??

From a comment on the prior post, we may know why Allegiant left ORH. From FlightGlobal.com, please note comments from Allegiant boss from the article below. Ironically our Airport Director Eric Waldron (note February minutes) attended the same conference. Sounds like Mr Gallagher may be speaking about ORH in comment 1 and not ORH in comment 2.

Comment #1 from Mr Gallagher

That new approach must also apply to fuel services. "Fuel is a pain in the ass," says Gallagher, but it represents 40% of Allegiant's expenses. "So I'm in the fuel business." Airports should not "outsource and forget" fuelling services. "A monopoly fueller is a serious competitive handicap. We literally have a number of cities we won't go into because of this. They are not just making a living off us they are making a killing off us, and we are just not going to do it."

Comment #2 from Mr Gallagher

Allegiant Air chief executive Maurice Gallagher revealed at Network plans to add 50 cities over the next five years, including up to five new focus cities. Given Allegiant's unique model of flying where no one else flies, Gallagher's promise should translate into critical business for dozens of small US airports eager to attract more services. Allegiant now operates 68 routes, linking 48 small US cities with three focus cities.

Rockford Keeps Going

Keep in mind Rockford had no commercial passengers after 9/11 and is within one hour to a major airport (Chicago), but is thriving just like Stewart below. From the Rockford Register, last month (February) 18,663 passengers. Here is part of the story:

February airport’s busiest month since June ’05
by Thomas Bona

Staff writer Thomas V. Bona may be contacted at 815-987-1343 or tbona@rrstar.com

“You’ll be hard-pressed to find too many airports in the country who are showing 70 percent increases in year-over-year activity,” Executive Director Bob O’Brien said. “We’re certainly pleased with where we’re at. If we have any frustrations, it’s that we want to be going faster.”

The top destinations they’re targeting are Mesa, Ariz., and Fort Myers, Fla., said Mike Dunn, chairman of the Greater Rockford Airport Authority board of directors. Officials are also talking to Allegiant Air about links to the Seattle area and southern Texas and to United Airlines about flying to Washington, D.C., but those are likely further off.

In marketing the airport, officials note that planes flying in and out of here are 83 percent full, higher than the industry average.

The most popular routes in February again were Allegiant’s to Orlando and Las Vegas, both of which topped their January numbers. Apple Vacations’ route to Cancun was slightly up, while the Allegiant route to Tampa Bay and United’s route to Denver were about even with January.

“We have a new opportunity every day to demonstrate the strengths of RFD to United, to Allegiant, to Apple and to the entire industry,” O’Brien said.

March 19, 2007

Stewart Update

Good time for a Stewart update. From the Business Travel News Online. Part of the story below. Port Authority of New York and New Jersey buying a "reliever" airport for the last 93 years of a lease for 78.5 million.

NY, NJ Port Authority To Buy Stewart International

By Frank Rosci


MARCH 19, 2007 -- With uncongested airspace in dramatically short supply in skies above New York City and ever-growing numbers of passengers pushing the combined capacity of the city's three major airports to near maximum levels, the Port Authority of New York and New Jersey is doing something it hasn't done since 1949—buying another airport, namely Stewart International in Newburgh, N.Y.

According to the Port Authority's Board of Commissioners, the plan—which allows the agency to purchase the airport's operating lease from London-based National Express Corp. for $78.5 million for the contract's remaining 93 years—represents a necessary step in light of the city's crowded skyways and burgeoning ranks of travelers.

Some 104 million passengers in 2006, a record number, flew into and out of John F. Kennedy, Newark Liberty International Airport, LaGuardia Airport and Teterboro Airport, said spokesman Marc Lavorgna, up 20 million passengers since 2003, with 125 million anticipated by 2015 and 150 million by 2025. In the next 10 years, Port Authority will invest $4 billion in the airports.

"Our interest in Stewart has been known for some time and today's action is the result of a long-term vision for tackling the air traffic challenges we face in coming years," said PA chairman Anthony Coscia on Jan. 25, 2007.

The announced date for the agency to begin operating Stewart is October 2007. Until then, the final details of the deal will be worked out, said Lavorgna. "Stewart is being acquired as a 'reliever' airport because New York is running out of airspace and eventually will run out of room sometime in the 2015-to-2025 timeframe. Passengers flying in and out of New York are experiencing long delays within a 235-mile radius of the city," he explained.

March 18, 2007

February Board Minutes

Have been post at this link.

Negotiations Last Time

The minutes have been getting a little better. I would think monthly meetings should automatically contain monthly flights in and out of ORH, passengers (right now 0), budgets numbers, etc.

As far as on-going negotiations (MassPort and airlines), they should be discussed during the meeting but under an Executive Session, where minutes are kept. Once the issue for the Executive Session has been completed, the minutes for the Executive Session should be released to the public.

Airport For Sale

There was a small piece in the Business Section today that maybe the City of Worcester should have put ORH on E-Bay or created a website

http://www.airportforsale.com

Actually I think both of these ideas are pretty good and should have been done the past 3 years and started the very day the current extension was signed. Check out these links:

  1. El Mirage Airport 5,900,000
  2. Kingsdale Airfied 1,100,00
  3. Airport South Central Section of the Country 12,000,000
  4. Paradise Valley California 1,200,000 March 7th post

March 16, 2007

Executive Sessions

First of all, I do not want to hurt negotiations with an airline.

Second, the airline packages that I requested should not be sent out if we are in fact in negotiations with one of these airlines. The packages should be held back under the privileges provided under Executive Sessions. I think there is an case under number 6 under the Mass General Laws on Open Meetings for the Airport Commission to deny my request.

Since the airport never has an Executive Session, however, they need to send me the information. Although I will receive it, I will not put it on the web until I am told that any pending negotiations are over.

If nothing else, this shows the need for Executive Sessions.

Two Airline Package

Sometime next week I expect to receive these. Once I do then I will ask whether or not any negotiations are still pending with either of these airlines. If they are I will not put the package on the website, I do not want to jeopardize anything; however, once I am told negotiations are over I will.

Allegiant

I caught the last community meeting up the airport regarding the Master Plan on television the other day. Airport Director Waldron told those in attendance that Allegiant pulling out of ORH, can not remember the exact words, was not due to ORH but more due to Allegiant specifically their fleet and the upcoming IPO. He then proceeded to site to back his case that Allegiant had pulled out of Stewart (Newburgh, NY) and Pease (Portsmouth, NH).

First off, Allegiant pulled out of Stewart, because National Express (company that runs the airport) does an excellent job. To that end, after Allegiant had agreed to come to Stewart, National Express also enticed JetBlue and Airtran. Once that happened Allegiant decided there was too much competition and changed their plans to come to Stewart. Secondly Portsmouth has two direct flights per week still to Sanford thru April.

How come Allegiant decided to keep two flights per week out of Portsmouth to Sanford (longer flight then ORH), but not ORH?

March 15, 2007

Channel 13 Sunshine Week

I was on a panel today that filmed an hour long show today at Channel 13 on Sunshine Week. It was alot of fun. After it was done, I want to make one thing perfectly clear.

There are matters that the Airport Commission should not discuss within the public view; for exampe, negotiations with MassPort or airlines. These discussions by the Airport Commission must, however, be done within the contents of a Monthly Board meeting. An Executive Session should then be voted in to discuss these negotiations outside the public view, where minutes are kept.

Once the underlying cause for the Executive Session has concluded, then the minutes of that Executive Session should be released. I could be wrong but I do not believe any Executive Sessions have been called since January, 2005. Since negotiations are never mentioned during the Airport Monthly Minutes and no Executive Sessions are called, how can tax-payers know what is going on????

Telegram Editorial

Here is the latest Editorial on the airport. Now this is what I call conducting the negotiations in public. Considering that the past Airport Chairman and a Current Commissioner is Mr Nemeth, it is clear to see that the negotiation are aiming towards a long-term lease at a nominal amount ($1), where I imagine (as predicted numerous time here on the blog for months) MassPort will pick up both the operating deficit and debt service with an option to renew the lease.

I am still not sure, however, how Councilor Rosen "pressed City Manager Michael V O'Brien for details for talks". All anyone has to do is read today's Editorial for the details of the negotiations.

Finally, I am not saying that this is a bad thing. In fact I think this will be a huge improvement, although I would like to review the final agreement. My only wish was that we had conducted an RFP for the entire airport and had created interest from other potential suitors, not just MassPort.

March 14, 2007

Councilor Rosen

What exactly did he do wrong last night? I watched the meeting and this is what I heard.

  1. Councilor Rosen said that he would not support an extension of the current agreement. We all agree that the first 5 year agreement and the current 3 year agreement have gotten us nowhere. Although we should thank MassPort for the subsidies, it has not worked for either the City of Worcester or MassPort.
  2. Councilor Rosen said we hoped ORH was either sold to MassPort or a long-term lease was executed with MassPort. This is the type of agreement that he would support.
  3. Councilor Rosen only wished that we were talking to other authorities and airport management companies, not just MassPort
Keeping in mind that I agree 100% that the negotiations between ORH and MassPort should not be made public until they are complete, what exactly did Councilor Rosen say wrong? If Councilor Rosen had divulged some details of the on-going negotiations then I would have whole-heartedly agreed that this would have been incorrect. Again what did he say that we all, especially those who read this blog, did not know already?

Has not the City Manager said the he was in on-going negotiations with MassPort for several months? What else can we be talking about but 1) continuation of the current agreement, 2) the outright sale to MassPort or 3) long-term lease to MassPort? Did former Chairman and current Commissioner Nemeth hurt the negotiations when he urged us to sell or long-term lease ORH to MassPort in his Sunday column a few weeks back also?

In my opinion I translated Councilor Rosen's comments to mean that he hoped only that the on-going negotiations would end up with an onright sale or long-term lease to MassPort. Not only do I agree, but I see nothing wrong with his comments

Negotiations 3

I agree again that the negotiations between MassPort and the City of Worcester should not be conducted in public. At the same time how strong of a bargaining position are we in when:

  1. MassPort now knows we have a 21,000, 000 dollar deficit
  2. ORH now costs the tax-payers 150,000 per month
  3. Only three months left in the current operating agreement and the cost increases to 225-250K per month
  4. We are not talking to anyone else except MassPort
In retrospect we maybe should have been having these discussions to let MassPort take over, and end the current operating agreement prematurely, when we had Allegiant here.

MassPort Negotiations 2

Lets hope that these negotiations are wrapped up fast. I only imagine that the effective date of the long-term lease to MassPort at a nominal price relieving us of both the operating expenses and debt service with an option to renew (my guess) will be July 1st. Lets hope we have plenty of time to review and discuss it.

A group of us got together nearly three years ago and came up with 15 recommendations and post them on the website. Again I really think we missed an opportunity by not taking advantage of #13: Invite airport management companies to Worcester and review the possibility of putting together an RFP whereby we lease the entire airport to a private management company.


March 13, 2007

MassPort Negotiations

After watching tonight's City Council meeting, there are indeed things that need to be done outside the public view, like these negotiations with MassPort. Getting basic updates as to the general progress letting us know when to expect the final deal is enough. Airing specific details of the negotiations in public will only hurt the underlying negotiations. The progress of these negotiations, however, should be part of the Airport Board Minutes under an Executive Session.

My only point was that we should have been doing an RFP for the entire airport the past three years . Maybe a National Express would have wanted ORH?

At this point, it is too late and we need to get the best possible deal with MassPort for the tax-payers. I look forward to hearing the final results of the current negotiations.

DOT Small Community Air Service Grant

Will we apply this year???? From AMTOnline:

For the second consecutive year, the Small Community Air Service Development Program is alive despite efforts by the Bush administration to kill this grant program. And for the second consecutive year, the program will only award $10 million in grants instead of $20 million as it had in earlier years.

March 11, 2007

Public Requests

In honor of Sunshine week I am going to ask the Airport Public Liaison for:

  1. copies of the two packages that IMG prepared for two commercial airlines
  2. copies of all reports to the DOT on the expenditures for the grant monies

Sunshine Week

There is an editorial today in the Worcester Telegram in regards to Sunshine Week. Sunshine Week is a national initiative to open a dialogue about the importance of open government and freedom of information. In fact the Massachusetts Newspaper Publishers Association has asked legislators to consider six bills that would tighten up the state's Open Meetings Law.

Although I applaud these efforts, I would think that the Worcester Telegram would need to look no further then the Airport. There is one line in the Telegram story "the impulse to conduct the public’s business out of public view is strong. Lately, improper meetings of officials in the local coffee shop or pub to evade public scrutiny have given way to exchanges of e-mail." They may have well been referring to the airport, of which one of their own reporters is still on the board and a past chairman.

The airport is a public asset worth anywhere between 25-40 million depending on who you ask. Right now we are at a critical crossroads with only 111 days left in the current operating agreement. Based on the official monthly Board Minutes:

  • the tax-payers have no idea as to the status on any commercial airline negotiations.
  • the tax-payers have no idea what IMG has been doing, although we have spent more then $200,000 on their services.
  • no mention at all as to the progress in any negotiations with MassPort.
  • the meeting itself fails to include any budget numbers.
  • untimely posting of the meetings on the web, February is still not on-line as of March 11th
Take this test. During the summer of 2005, Tom Moore and myself were able to get copies of the Board Minutes for the entire year and post them on our website for everyone to see. Up until that point they were not being published anywhere. Now take a look at the January, 2005 Board Minutes. Although the meeting was 58 minutes long, the minutes are 9 pages long and full of excellent information.

After our efforts, the airport started posting their minutes on the web in January, 2005, but there has been a dramatic change in the minutes. Now look at any monthly minutes in 2005. Although the meetings still average about one hour, the minutes average 3 pages and the information is lacking to say the least.

Again from the Telegram " Open government is not an option. It is mandated implicitly by the Constitution and explicitly in its right-to-know offshoots, notably the Freedom of Information Act and, in Massachusetts, the Open Meeting Law. " I could not agree more with the Telegram, especially when an entity like the airport is costing the tax-payers right now $150,000 per month, after the MassPort subsidy.

John Travolta Home


Thanks Jim:

March 09, 2007

Privatization of Libraries

I heard a guy today on the radio say close the libraries. I do not like this idea but it got me to thinking of privatization. Few, if any, of the colleges own their own libraries of cafetaries then I found this story which actually even referenced Worcester.

T & G Editorial

Another in an endless stream editorials on the need to comply with the Mass Public Open Meeting Laws. I wish once they would look into the Airport Commission, of which one of their own employees sits. You can not find anything on:

  • the current negotiations with MassPort
  • current negotiations with any commercial airlines
  • current developments with IMG, a consultant that we have paid over $200,000
  • funds remaining in the DOT grant
  • budget numbers
  • lastly untimely posting of the minutes

Another Great Story From Tacoma

The NewsTribune.com:

Local governments have never relished the job of owning and operating general-aviation airports. Those airports have a well-deserved reputation as money pits. They demand specialized expertise to operate successfully, and the air traffic they support creates political problems for elected officials who are the target of complaints about noise, safety risks and vehicular traffic.

Those concerns are why in recent weeks two Puget Sound-area governments, the City of Tacoma and King County, have almost gleefully announced preliminary deals to get out of the airport business. Tacoma is negotiating with a private party to lease Tacoma Narrows Airport, a chronically money-losing operation across the Narrows from the city. And King County has announced a draft agreement with the Port of Seattle to trade King County International Airport, better known as Boeing Field, to the port in exchange for a railroad right of way that it wants to convert to a trail on Lake Washington’s eastern shore. The Port of Seattle operates Sea-Tac Airport.

But Pierce County is an exception to that trend. Its modest-sized general-aviation airport, Thun Field on South Hill near Puyallup, has managed to avoid the major financial problems and neighborhood issues that have made other airports such financial pariahs. Before coming to Pierce County, airport administrator Michael Esher had worked as a deputy director of the Kansas City International Airport and then in Alaska Airlines’ airports and properties division.

Esher recently talked with The News Tribune about Thun Field and its prospects for the future.
Tacoma Narrows Airport cost the City of Tacoma about $500,000 a year in losses. What’s the financial picture at Thun Field? Our margins are very thin now. We’re in the black, but barely. That lets you pay your bills on a day-to-day basis but what it doesn’t give you is the capital resources to improve your facilities. You can fix the garage door, but you can’t put on a new roof.

The area near Thun Field is a hotbed of commercial and retail development. With such close neighbors, is noise a major issue?
I don’t want to minimize the noise issue. The words “noise” and “airport” are synonymous. I don’t consider it to be a significant issue here. We do a lot on campus to make pilots aware of the departure and approach routes that are less disruptive to the neighbors. We recently developed this information brochure to go into the pilots’ handbook.
To me the bigger issue is that we have some expensive development locating in this area, so what I’m focusing on in this business plan is that the facilities out here are dated. What I want to be sure is that the facilities are as good as the neighbors expect them to be. I have a big push on to renovate the county-owned hangars. I’m negotiating with a retail developer who is building west of the airport. What people will see when they enter this retail development by one entrance are buildings that are not of the caliber that I would like.

What’s the plan to generate more money to fund those improvements?
There are two sides to every airport – the land side and the air side. The FAA grants money for air-side improvements. If you look at our airfield, the paving is in really good shape, the lighting is good, we’ve got a new weather station and we bought some property to clear obstructions. They don’t fund land-side improvements. So what you have to do is lease out the land-side property at a price that generates enough money to fund improvements.

What sort of tenants are you looking for to lease land and facilities adjacent to the airport?
We’re looking for uses compatible with the airfield similar to the ones we have on the west side of the field. We have two aircraft airframe shops, a propeller manufacturing and rework shop. We have Sagem Avionics building glass cockpit displays. So we’re talking about no-smokestack light industries. The problem is that like a lot of small airports, we don’t have all the infrastructure in place, so it’s going to take a creative partnership with a developer. So, for instance, if he put some money into putting in the infrastructure here, he’d get an appealing land lease. As he got late-comer tenants, we’d gradually increase the rent to market costs once he’d amortized his costs of making the improvements.

Is there room for more flying activity at Thun Field?
The airfield itself has the capacity of about 150,000 aircraft movements a year. Now we’re at 90,000, so we have plenty of capacity for growth.

Do you see Thun Field becoming something other than a general-aviation airport?
It’s got about 250 aircraft based there so it’s predominantly a general-aviation recreational airport. I would guess – though it is increasing – that we are about 10 to 15 percent business aircraft. I don’t ever see our customer market being much different than it is now.

What about commuter flights?
I personally don’t rule out commuter flights because of how difficult it is to get in and out of Sea-Tac Airport. I could see a trend of more of the business aircraft coming more to a Tacoma Narrows Airport or Thun Field.

The big thing in the airport management business over the last 20 years has been to eke out a little more runway, a little more runway. That was an issue with Tacoma Narrows Airport. But in talking with the FAA, any new type of aircraft with composite fuselages and more powerful engines is going to use less runway, not more. Both the Eclipse jet and the Honda jet both need around 3,000 feet. I can easily see a guy with a couple of these jets offering trips to Portland and the next pickup is at 4 o’clock. I can see this, maybe not in my career, becoming a huge wave of the future.

Great story on Airport Privatization from Austin Business Journal.

ABIA officials consider going private


Despite taking out a $400 million loan eight years ago to build Austin-Bergstrom International Airport, the city's thinking about becoming a landlord and leasing it out to a private company for hundreds of millions of dollars. City officials are debating that prospect privately and so far have not announced plans to pursue it, Assistant City Manager Rudy Garza says.

"Literally, we have spent ten minutes worth of discussion," he says, primarily spurred by plans by Chicago to lease its Midway airport. "It's really a stretch to say we're considering leasing the airport. Garza calls the leasing idea a "very limited opportunity -- if in fact we had any interest in pursuing the challenges and barriers that come along with it," he says. "We literally cannot say whether its a good thing or a bad thing -- whether the pros outweigh the cons -- we don't know."

But City Manager Toby Futrell will present the idea to city council members sometime in the future, Garza says, for the purpose of "reviewing and discussing the concept." The proposal would mirror that of at least six other U.S. cities that have applied to the Federal Aviation Administration to go private under that agency's Airport Privatization Pilot Program. FAA says Congress established the program in September 1997 to determine whether airport privatization could produce new sources of capital for airport development.

It is limited to just five participants, and only one large hub commercial-service airport can be leased under the program. Only general aviation airports can be sold. To be approved, FAA and most of the airlines using the airport have to agree. So far, Stewart International Airport in Newburgh, N.Y. is the only airport to go private under the program in March 2005. New Orleans Lakefront Airport has a pending application for final agency action. That leaves three positions available for interested airports, the FAA says.

Chicago submitted a preliminary application in September to take its Midway International Airport private, saying the arrangement would improve operations, safety and security. Three other airports have applied to the program, but later withdrew their applications, the FAA says. Niagara Falls International Airport in Niagara Falls, N.Y.; Rafael Hernández Airport in Aguidilla, Puerto Rico; and Brown Field Municipal Airport in San Diego all withdrew their applications in 2001.

If approved, Midway would be the largest airport to go private under the program. FAA ranks it 30th in the country by number of boarding passengers in 2005. It would be the only large-hub airport allowed under the pilot program.

March 08, 2007

Payraises

I often hear the current City Administration refer to the City as being a business, just like any other business and I agree. As someone who runs a business, I have a pretty good idea every day whether we are making money, losing money or just paying the bills. What troubles me most about the recent spat of pay raises was the timing.

Although I truly believe the City Councilors may not have realized the extent of the projected losses (21 million), there was not way it was a complete shock to everyone. In retrospect the five year financial plan last year and the warning from Mr Delsignore about a month or two ago was a warning shot prepping the tax-payers for this 21,000,000 shortfall.

Kudos to the City Councilors, if they do give back their payraise. Now lets hope they start asking tough questions like a real Board of Directors at a private company on the progress of:
  • City Square
  • South Worcester Industrial Park
  • University Partnership
  • Status of the negotiations with MassPort.
  • why a lease at 15 Coppage Drive was renewed last year for 20 more years at 12 per year when there were clear violations in current lease.
  • Maybe we should look into a tax relief month whereby people can pay any back taxes during a said month and the City will waive any outstanding penalties and interest.

Next time you are in Westboro drive by the old Bay State Abrasives site. Similar project to City Square and you will not believe the progress.

March 07, 2007

News Last Night

Did anyone see the City Manager on Channel 46 News last night?? He was on talking about "privatizing" the airport. This process should have start July 1st, 2004, the day we signed the current 3 year extension with MassPort when a large portion of the losses were being picked up by MassPort.

I am not being a Monday morning quarterback on this either. We have been talking about this since 2004 , brought this to the attention of then Chairman Nemeth and even presented this suggestion to the airport board last February, 2005--check the minutes. We should have had a RFP for the entire airport marketed the past three years looking for a National Express (Stewart), Spanish Company (Milwaukee) or maybe one of the nearby airport authorities (Providence, Manchester, Hartford) looking at us.

Now,when the airport is costing the tax payers $5,000 per day and the current agreement ends in less then 4 months is a little too late. There is only one person that we are talking with and that is MassPort. Stay tuned for a long-term lease at a nominal price with options to renew with MassPort.

For the life of me I do not understand that , if this is what is going to happen, lets get it done now and start saving $5,000 per day?

March 06, 2007

Councilor Rosen

Tonight Councilor Rosen asked some questions on the airport. this fiscal year--July last year through June of this year--after the MassPort subsidy ORH costs the City of Worcester's tax-payers $1,800,000. Recently I have been guessing at $1,200,000.. This is unreal!! It costs us right now $150,000 per month or $5,000 per day right now!!!!!!!!!!!!!!!!!!!!!!!!!


Why are we waiting??? We all know the MassPort deal is a done deal, just sign the deal now. Why wait until July 1st when we could save $5,000 per day??

City on "the Bubble"

City Manager painted a very very bleak picture of the financial situation of the City of Worcester and described the City being on "the bubble". Little confused by some of the numbers but it sounded to me that between the School and City budgets, we are looking at a 20 million dollar deficit.

If there was any doubt, you can say goodbye to ORH via a long-term lease with options to renew at a nominal fee, but the operating deficit and debt service (I hope) will be picked up by the leasee (MassPort). Wonder if they will pay any real estate taxes on ORH? Is MassPort a non-profit?

Although I feel this will be an improvement, let me give you the real estate example I used yesterday. Assume you owned an apartment building that I managed. After collecting the rents and paying all the bills, it was costing you money every year and was really starting to drain your finances.

I find a person who will lease the building long-term at a nominal price each year, but agrees to cover any losses during the lease. Your first question would be how did I market your building? Maybe you would about any other offers??? If I told you that I did not market your building and only talked to this one buyer, would you be happy?

March 05, 2007

TOLD YOU SO!!!

I know this sounds like a baby, but here is proof that you never know who may be interested in ORH? I am not saying this Spanish Company would have necessarily been interested in ORH, but the airport administration had a fiduciary responsibility to get the highest return on a City owned asset. There is no excuse why we could not have been trying to privatize the airport via a well-publicized RFP the past three years:

http://www.myfoxmilwaukee.com/myfox/pages/News/Detail?contentId=2568001&version=1&locale=EN-US&layoutCode=TSTY&pageId=3.2.1


WITI-TV, MILWAUKEE -- A Spanish company is looking at buying Milwaukee's General Mitchell International Airport.But airport authorities say the facility isn't up for lease or sale.Milwaukee County supervisors looked at selling or leasing the county-owned airport last year.They said it could raise money to supplement the budget. And they also thought selling it would mean they wouldn't have to turn it over to a proposed regional airport authority.A study this fall figured a long-term lease of Mitchell could bring in hundreds of millions of dollars over a 50-year period.The Spanish newspaper El Economista reported last month that Grupo Ferrovial, a multinational development corporation, was looking at Mitchell.The company owns BAA, the world's largest airport management company.A new program by the FAA allows up to five U.S. airports to be privatized.The only airport to do so -- Stewart International in New Windsor, New York, is ending its privatization seven years into a 99-year lease

March 04, 2007

15 Coppage Dr

Newspaper Today:

Leasehold Interest
12 acres-41,000 SF Building



The leasehold interest is for an City of Worcester asset (land) that the Airport Commissioners renewed last year for $12 per year with the Kennedy Family Trust for 20 years, despite the fact the there were various violations of the current lease including subletting, not being current with taxes currently over 190,00 and a bankruptcy.

Does anyone care?

March 03, 2007

Tacoma Narrows Update

Story from the Ken Sherman at The News Tribune. Basically these guys at Tacoma Narrows are doing all the things that we should have been doing. Remember how the County wanted to buy the airport, but then another private party stepped forward:

Lots of pluses in airport deal

Negotiations near success in putting Narrows Airport in private hands



Tacoma officials are close to landing a deal that could wipe out the city’s Narrows Airport debt, eliminate a longtime drain on the budget and put the facility in the care of a professional airport operator. The pact is being negotiated with an unnamed private party. City Manager Eric Anderson and facilities manager Mike Slevin told City Council members Tuesday the proposal could:

• Give the city $4.2 million in upfront lease payments. That’s enough to pay the city’s $1.2 million share of safety zone improvements and erase most of a loan from the general fund.

• Eliminate a biennial operating deficit of $550,000.

• Generate cash to the city from a 20-year lease reflecting the market value of the property.

• Remove responsibilities for airport operation and maintenance from the city.

• Include an option for the leaseholder to buy the airport if the Federal Aviation Administration consents to a sale and releases the city of its obligations to the agency.

Anderson stressed the negotiations are not complete, but he and Slevin presented an upbeat report that left council members smiling. The two didn’t know when they might bring an agreement to the council for approval, but Anderson said he hopes to have something in place by the end of March. The amount of the monthly lease is still under discussion.

“I think this is good progress,” Councilman Mike Lonergan said during an afternoon study session. “I think this is the direction in which we want to move. Other council members agreed. But many left little doubt that what they’d really like to see is a signed sale agreement with an airport operator.

Councilman Rick Talbert called the airport “a huge asset for the area.”

Councilwoman Julie Anderson described it as “a regional economic tool.”

The city and Pierce County talked last year about the possibility of the county buying the airport, but those discussions fizzled, Slevin said. The city would need “a full-blown appraisal” before selling the 43-year-old general-aviation facility on the Gig Harbor peninsula, Slevin said.
The city has estimated its value for airport use at $10.5 million. Tacoma’s 644 acres, an island of city-owned land in unincorporated Pierce County, could fetch more than $20 million if sold to developers, estimates show.

But that kind of sale would be difficult. Since airports are considered necessary for safety and welfare of citizens, it could be difficult to secure FAA approval to do something else with the land. “The FAA is in the business of keeping airports open for the most part,” Slevin said. And the city could be on the hook for airport grants it got long ago from the FAA, Slevin said. Neighbors in the area might object.

But there is a market. “The desire to develop this piece of property in the development community is huge,” Slevin said. “And there’s no fear of taking on the FAA, taking on the private community groups and just paving the place,” for the construction of houses and condominiums, he said.

Lonergan and others liked the idea that the city might get out from under the financial burden while the region still keeps its airport. “I think it would be a big, big mistake” to sell it as other than an airport, he said.

Kris Sherman: 253-597-8659

kris.sherman@thenewstribune.com

CIty Council Meeting

I thought the first meeting of every month contained the monthly report summarizing all the projects going on in the City like the Airport, South Worcester Industrial Park, Mason-Winfield, etc. I did not see it or anything at all on the airport.

119 days left to the end of the operating agreement.

March 02, 2007

JetBlue Service Area

JetBlue now services five cities in Massachusetts. We all know Boston and now have added:

  1. P-Town
  2. Hyannis
  3. Martha's Vineyard
  4. Nantucket
Go to their website and you will see all of these cities listed. How do we lose out on this?

March 01, 2007

JetBlue

I just went on their website and checked out a ticket from P-Town to Boston an then on to Fort Myers. The cost was $149!!!!! I would book this ticket everyday of the week. In fact I would easily pay $199 and maybe $249 for this flight out of ORH.

How did ORH miss out on this shuttle while P-Town, Martha's Vineyard, Nantucket and Hyannis did get a shuttle to Boston on Cape Air, who has a code sharing arrangement with JetBlue. ORH is:

  1. 2nd largest city in New England
  2. catchment area of over 2,000,000
  3. $100,000 of readily available DOT grant monies
  4. relatively new empty terminal
  5. MassPort (owner of Boston) is our partner is the destination of these flights
  6. our consultant, IMG, has been paid over $200,000 to help recruit and retain an airline, actually identified Cape Air in their original report about 18 months ago.

How did we miss this opportunity? Imagine being able to drive up to ORH and catch a flight for $149 to Fort Myers for Spring Training on JetBlue.

February 28, 2007

Master Plan

It has been three years that we have waited for the Master Plan. Wonder if we will get the results before or after we long-term lease the airport to MassPort?

February 27, 2007

Stewart

From the Poughkeepsie Journal:

February 26, 2007

PILOT ? Reconvene Task Force!!

A few years back I was on a task force, although now I could not be on it as a Holden resident according to Councilor Clancy, that looked into the PILOT headed by Rep Leary. We all realized that there was very little the City could not legally to impose a property tax, but that there were other options. Bottom line you can mail a college a tax bill and if they do not pay it, there is nothing a City of Town can do.

The key to the whole task force was that Representative Leary, who did an excellent job, brought people in from CEO for Cities who brought in reports on how other cities work with their non-profits, in particular Pittsburgh. After a few months, we came out with a really good report on how we could maximize the assets (monetary and intellectual) on the non-profits in the the City of Worcester. Amongst the many recommendations was that we should have an agency dedicated solely to these efforts.

Recently I have read about the PILOT issue being brought up again by some of the councilors. As a result I decided to check out the agency that was created by our task force the UniverCity Partnership. I got to tell you that I was rather disappointed. Although I have not heard of many of our recommendations being implemented, I was hoping that I have read something different. Quick can anyone tell me who heads this Partnership??? If you want, you can check out the report here.

If you want to see how this is suppose to be working check out the City of Pittsburgh's University Partnership or the Providence Plan. Instead of going down the PILOT road again, maybe we should reconvene the task force and take a look at our original recommendations and see how we have done so far?

February 25, 2007

15 Coppage Drive

In February of 1986, the Airport Industrial Park executed a 20 year lease with the owners of Kennedy Die to move their business to from Harding Street to 15 Coppage Drive for a cost of $12 per year or $240 over 20 years. It was a good deal for both parties since the City brought a business to the new Airport Industrial Park, kept a business in the City of Worcester, created a sizable investment into a new building by the owners of Kennedy Die, increased the city commercial tax base, created jobs, etc.

The original lease contained an option to renew the lease for two additional twenty year terms , assuming that the terms of the original lease were complied with. One of the terms was that real estate taxes must be kept current. Last year when this lease was renewed the property was not current and the today the tax bill stands at $191,000. I also question as to how a three year sub-lease, violation of the lease, was executed to Thermalcast in December of 2004 that was not approved by the Airport Commission until November (check the board minutes), another violation of the lease. By the way there are even more violations.

Putting all of that aside why am I writing on this today? In the real estate section today, there is an auction dated for March 9th for 15 Coppage Drive advertising the leasehold interest remaining. I assume the successful bidder will only have to pay the City of Worcester $12 per year for the 12 acres through 2026. I also then assume that the successful bidder will have an option to exercise the last 20 year renewal in 2026 for the same $12 per year.

Who is in charge of renewing the lease? I do not think it it the City of Worcester but the Airport Commission, I need to double check this. Last year the lease clearly should not have been renewed and today at the very least we should take steps to end the lease since the terms (back taxes being current) are not being complied with.

If the City of Worcester is facing a budget crisis, which I believe that they are, and need to cut two fire engines, I guess that is what we have to do. It really bothers me, however, to see:

  • leases renewed at $12 per year when real estate taxes, now at $190,000, are not paid
  • permitting fees, ironically also about $190,000, are waived for the Performing Arts Center, which in the end will pay no property taxes as a non-profit.
  • union station tenants that do not pay rent
  • investments like $7,000,000 in a SkyBridge, which if not enough "net new" taxes are raised will cost the taxpayers of Worcester.
Ironically we have the airport commission conducting two more RFP's to lease land. Maybe this would be a better time to review all the current airport existing leases to make sure that they are all in complaince

February 24, 2007

Airport Goals

Since 2004 when we started the home page . Our goals have been quite consistent. I have copied them below. A shuttle via Cape Air to Boston with JetBlue code sharing agreement meets the goal of a shuttle to a major hub.

Targeted Leisure Airlines

1. Allegiant Airlines: December 22, 2005 1st flight --September 3, 2006 was their last flight.
2. USA3000
3. Apple Vacations: partner of USA3000
4. Festival Airlines start-up based out of Rockford with a similar business plan as Allegiant.
5. SkyValue:
6. Skybus


Shuttles to a Major Hub

1.JetBlue to JFK on their Embraer 190
2.Colgan Air, US Air, to LaGuardia
3.Mesa Air, Delta Connection, to JFK

Very Light Jets

1.Linear Air

Start-ups

1.Festival Airlines
2.Skybus
3.CQ Air

February 23, 2007

Stewart International

Passenger traffic at Stewart International Airport is on track to do what officials predicted, which is to nearly triple 2006's rate. January's numbers were reported Tuesday by Stewart officials. A total of 61,429 people boarded or deplaned, up 168 percent from the 22,892 of January 2006.

February 22, 2007

JetBlue

I was going through some of stuff and I found this from April of 2004:


1) JetBlue's hub is in NY. All they need to do is provide daily jet service to and from Worc to New York. From there you would be able to connect with direct flights around the country.
2) JetBlue is doing this already in Rochester, Syracuse, Burlington and Buffalo
3) JetBlue is looking to do this also into Manchester, NH and Portland, why not Worcester, the third largest city in New England?
4) JetBlue has a relationship with MassPort and we may be able to “leverage” this relationship to get JetBlue to fly into Worcester.
5) JetBlue's target market is smaller markets like the Worcester
6) JetBlue recently has made a sizable investment in a fleet of jets with 100 seats to service smaller markets like Worcester.
7) JetBlue is innovative and aggressive and may be the type of airline to give Worcester a chance.
8) JetBlue could get naming right to our empty airport or even the Centrum.
9) JetBlue can tap into a large market of college students who fly home, retirees who go to Florida and a Latino population that travels to Puerto Rico and the Dominican Republic.


Some three years later JetBlue has made a huge commitment to Boston with numerous daily flights to their hub at JFK as well as many direct flights throughout the country. Most recently we have even seen JetBlue start a code-sharing agreement with Cape Air to feed Boston. Why were we not included in this??

During the summer of 2004, Tom Moore even called the strategic flight planner, Dave Ulmer and convinced him to visit ORH. We have had JetBlue on the radar screen for three years, had the strategic flight planner visit ORH, have spent over $200,000 on a consultant to recruit/retain an airline and missed a code-sharing agreement between Cape Air/JetBlue.

Recently I flew to Tampa. Between the drive time and out-of-pocket expense (80) I would have paid 149 round trip on Cape Air between ORH-Boston to get on a JetBlue flight to Tampa. Imagine how much easier it would be to check in at ORH on a Cape Air flight!!!

February 21, 2007

MassPort to Increase Cargo

Interesting story. Here is part or the full story:



The Massachusetts Port Authority will develop a new port plan that outlines additional facilities, land and transportation infrastructure needed to support the growth of Boston’s cargo and cruise ship operations through 2025. The agency is looking for a consultant to help assess further expansion possibilities and financing sources for its South Boston maritime facilities. “We’re looking for a strategic plan that will look at global economics regarding world trade,” said port director Michael Leone said. “It’s imperative that we develop the infrastructure, water depth, roadway system and container handling space to meet this increase in trade.”

Massport has seen 6 percent to 9 percent annual growth in container cargo operations for the last three years. “We expect that growth to continue, and we expect some of the growth to be coming from trade that will be moving into South China and the Indian subcontinent and into the U.S. East Coast through the Suez Canal,” Leone said.

Massport is increasing the cargo-handling capacity at the Conley Container Terminal by 50 percent under a two-year project that will be finished this summer, but more capacity will be needed to handle future growth. The Massport Marine Terminal also is being redeveloped as a cargo warehouse and bulk cargo facility.

February 20, 2007

DCU Special District Finance Zone

I am getting kind of confused by the financing on this but the two recent articles in the Telegram that I have read the past week but here is what I come up with. This is not a a TIF or DIF, but something completely new created during Governor Romney's last days in office, the DCU Special District Finance Zone. It is a fixed geographic area consisting of four parcels: the Hilton Garden Inn, the Residence Inn by Marriott on Plantation Street, the DCU Center arena and convention center and the Major Taylor Boulevard parking garage, including its retail space and operations.

The bill authorizes the City of Worcester to borrow up to $30 million to finance the construction of the “sky bridge” and upgrades to the DCU Center. The initial loan order recommended by the manager initially authorizes $5.125 million in bonds to be issued for the $7 million sky bridge project. The balance ($1.875 million) of the financing for that project is already part of the city’s Five-Year Capital Improvement Plan. How does the City of Worcester pay this back?

The special district designation allows “net new” state tax revenues, such as meals and sales taxes, collected at those establishments to be redirected to the city. The state will continue receiving existing tax revenues from establishments in the special district financing zone, but it will dedicate the "net new" revenues from that zone to the city so it can repay the loans that are taken out for the sky bridge project and improvements to the DCU Center.


Two things can happen.

1. First the DCU Special District Finance Zone will do additional business and the "net new" state tax revenues collected will be redirected to the city, pay the notes and cost the city tax-payers nothing.
2. Second the DCU Special District Finance Zone does no do any additional business and does not create any "net new" state tax revenues. In the later case the note would have to be paid back so I would think it would come out of the City's general fund.


All I am saying is that there is some risk here. In fact Mr. O’Brien emphasized that the loan authorization limits any further capital improvements to proceed beyond the first allotment of $5.125 million. He said further work would be dependent upon the revenue-generating success of the DCU Special District Finance Zone. The loan authorization requires the city manager, with the assistance of the city treasurer, to report to the City Council on revenues generated by the special district, to demonstrate that they can financially support additional capital improvements beyond the first allotment.

In the end the questions is will these investments create the additional "net new" state tax revenues to pay the notes thus not cost the taxpayers of Worcester?? Reminds me of buying stock on margin. If the stock goes up, you can make some great returns. On the other hand if the stock drops, you get a margin call.

Harry Tembenis Letter to the Editor

There is only so much we can write about the airport. As I have said before we will start looking into other matters that concern the city.

Friday, February 16, 2007
City fleet could run on used vegetable oil




Regarding an editorial, “Green light / City’s alternative-energy plan is timely” (Telegram & Gazette, Jan. 31), while the city should be commended for being proactive on the “green front,” there was a key alternative-energy technology missing which could greatly help a current hot-potato (no pun intended) issue affecting the city and the restaurateurs in the city: the mandated, expensive installations in restaurants and other food establishments to keep fats, oils and grease (or FOG) from clogging up the sewer system.

A Massachusetts-based company called GreaseCar has the technology available for engines to run on used vegetable oil. If the city were to convert some or all of its fleet of vehicles then it would have an unlimited supply of fuel from the city’s restaurants and hence would take the burden off of the sewer system.

By this act alone the city sends a loud, clear message to the alternative energy sector that Worcester wants to be a major player in this evolving field and is “open for business” both in utilizing such technologies and welcoming the jobs that will be created by such emerging technologies.



HARRY TEMBENIS

February 19, 2007

Land RFP

I still see many problems with the RFP to scare away prospects. Twenty years is simply not enough time to recoup an investment of this amount at an airport that is struggling. The main thing that jumped out at me this time is the section on utilities.

Basically there are no utilities provided. The successful bidder needs to provide their own utilities at their own cost. I have no idea where the closest water and sewer line is but this can end of cost a ton of money not to mention other utilities.

Just do not see how anyone can bid on this.

Airport Director

Leadership comes from the top. On this blog we constantly talk about Rockford and Stewart as the two airports that ORH should follow as an example. Now do a search of "Rockford Bob O'Brien" or "Stewart Chuck Seliga". These two airport directors are constantly out front and center selling the benefits of their airport.

Now do a search for "Eric Waldron" or "Worcester Eric Waldron"? Other then a high school wrestler in New Jersey, our airport director is non-existent. Even after Allegiant pulled out of Worcester, I never saw one comment from our airport director.

After a new management team is in place maybe one of the first things we should do is find out what Chuck Seliga future will be, now that Stewart is being taken over by the Port of New York and New Jersey.

February 18, 2007

January, 2007 Board Minutes

Click here and hit the tab that says Board Minutes.

  1. Amity is renting a mobile office and not the office in the hangar space, why is this?? Remember we have been told the conditions are deplorable. Are they so bad that they can not use the office space and now need to go to the mobile office, which I imagine is a trailer.
  2. Looks like Mr Nemeth is also beginning to wonder why we are paying so much money to IMG.
  3. No mention on how IMG is doing with their "two"packages for the two airlines that they are working on to recruit and retain.
  4. No mention as to status of the MassPort negotiations.

JetBlue

Harry made a comment about this the other day and I borrowed this summary from theFebruary 14th's posting from the Cranky Flier (great site):

Beginning March 19, JetBlue and Cape Air customers will be able to take advantage of a codeshare that will connect JetBlue flights to Boston with Cape Air flights to Hyannis, Nantucket, Martha's Vineyard, and Provincetown, all in Massachusetts.

b69kroutes

The partnership is a big deal for JetBlue, because involves codesharing, interline baggage, and frequent flier points redemption on another airline for the very first time. This certainly appears to be a test for the airline, and if it does well I'd expect to see more.

Sort of lost in the shuffle but still a nice move is the announcement that JetBlue will fly nonstop on Embraer 190s from New York/JFK to Nantucket from May 24 through September 24. They're really going to take advantage of the summer season there, and it seems like a smart move. Personally, I'm still bitter that I didn't win the limerick contest sponsored by Nantucket Airlines (owned by Cape Air), but I'm trying to forgive and move on.

February 17, 2007

Rockford Targets 250,000

Rockford Airport facing many of the same challenges as ORH with no commercial service a few years back is targeting 250,000 passengers this year. Story from the Rockford Register:

It’s getting more crowded at the Chicago/Rockford International Airport, but officials hope it doesn’t feel that way. The airport had its second straight month of 17,000 passengers in January, the first time it’s done that in a year and a half. The 17,041 passengers that flew in and out of Rockford this January is an 86 percent increase over the previous January, a strong first step in the airport’s goal of 250,000 passengers this year.

To deal with growing numbers, the airport continues to improve its terminal. Two new escalators will be operational by the end of the month, the restrooms are being renovated, and there are plans to double the number of courtesy phones, expand the security check-in area and open a self-service restaurant.

“We knew we needed to do additional things if we want to sustain our image as a hassle-free, low-cost, high-value alternative,” airport Director Bob O’Brien said. “We have to be working across so many fronts — that means chasing airlines as well as satisfying passengers. This is the satisfying passengers part.”

Meanwhile, airport officials are discussing long-term planning issues, including expansions of the terminal. The building can comfortably handle between 500,000 and 750,000 passengers, numbers that officials hope to top in the next few years.

Mike Dunn, chairman of the Greater Rockford Airport Authority board, said last month that topping 250,000 passengers this year is a realistic goal, though officials think they can draw as many as 300,000.

This year started out much stronger than last — by the end of January 2006, Northwest Airlines had left town and Rockford had only two routes. Now there are five routes. The most popular were to the Orlando and Tampa Bay areas of Florida, which each topped 4,500 passengers. Dunn said January is historically a down time for travel, so the sharp increase in passengers is noteworthy. February is projected to top 17,000 passengers also, again strongly beating 2006’s numbers.

O’Brien said keeping passengers happy comes down to little things as well as big ones. The new escalators will make it easier for passengers to get to and from the upstairs boarding areas, while the expanded security area will keep people from backing up onto the escalators.The redone restrooms will have hand-sanitizer dispensers, separate sinks instead of the large shared sink and paper towels to complement the dryers.

The airport will also remove its last pay phone this year and at least double the handful of courtesy phones available for local calling. “People go, ‘It’s free?’ Yeah, it’s free,” O’Brien said. “People think it’s a nice touch.”

February 15, 2007

15 Coppage Drive

In today's legals there is foreclosure notice for an auction on February 15th. The reason I bring this up is that the property is part of the Worcester Airport since it is the Airport Industrial Park. The current leasee, Kennedy Family Trust, had an initial 20 year lease that started February 1, 1986, but evidently was extended 20 more years when it expired in February, 2006.

I never understood how the lease could be extended when one of the terms of the initial lease was to be current on real estate taxes. Right now the tax balance is $190,602. Assume if BankNorth, or someone else, is to take control of 15 Coppage via the auction, they are able to assume the renewed lease at the same terms , something like $1,000 per year, until February, 2026.

RFP's

Did anyone read the story in today's Telegram in regards to the RFP for the two old schools. Here is one line:

There has been a concerted effort to advertise and attract qualified developers from across New England,” Mr. O’Brien said. In an effort to reach a broader audience, Ms. Jacobson said the RFP has been advertised in the Boston Herald, New England Real Estate Journal and Banker & Tradesman, in addition to the Telegram & Gazette and Central Register.

I commend the City of Worcester on these efforts, but only wish the same marketing effort had been put into ORH.

February 14, 2007

136 Days

On this snowy day couple of thoughts:

  1. 136 days left in the current operating agreement. MassPort is a done deal--long-term lease at a nominal amount with an option to renew with some revenue sharing.
  2. why are we trying to put these two parcels of land out for RFP now with so much uncertainty?
  3. A St Pete's flight from Allegiant out of ORH would not only have attracted Tamps fliers, but Fort Myers and other popular destinations on the Gulf Coast like Naples, Port Charlotte, etc
  4. Assuming the current $70,000 goes to IMG, we will paid them approximately $270,000!!! We would have been much better off juts writing a check to Allegiant keeping them here and hitting 10,000 passengers, which means 1,000,000!!
  5. Can I say it again for the 100th time.. Losing Allegiant was a huge loss.

February 13, 2007

January Board Minutes

Can you believe that there is not one mention regarding the fact the current operating agreement with MassPort is ending soon and how are the negotiations going in the Airport Board Minutes?

Or any mention in the board minutes as to how IMG is doing in their recruitment efforts to date?

IMG

We spent $100,000 on their initial report that, which amongst other things, identified 6 or 7 airlines that would be perfect for ORH.

We then spent another $100,000 to retain them to help us retain and recruit an airline. To date all I know is that they put together two packages, but have no idea to whom or how it went.

Now they another $70,000 to

  • advise the city which airlines could be successful at ORH. Let me get this straight we have paid them over $200,000 and they still do not know which airlines would be successful at ORH.
  • hire another company to do route analysis for top ten markets. We have spent $200,000 and have not done this yet.

Lets forget about the first $100,000 that we paid for the report. Can anyone tell me exactly what we got for the second $100,000 before we spend another $70,000 on IMG???

City Council Meeting

Tomorrow night, we have a city council meeting will anyone ask:

  1. How is IMG doing on their recruitment efforts, specifically what happened with the two airlines that "packages" were being prepared for?
  2. Why are the January Board Minutes still not on the airport web site?
  3. How exactly has the Department of Transportation Grant monies been spent?
  4. If we are not, why are we not talking to the other potential suitors for ORH other then MassPort?
  5. Why are we putting the 2 parcels of land out for RFP now when the future management of ORH effective 7/1/7 is not known?
  6. Has Coordinates Corp, the subject of the November 2006 Board Meeting, moved their jet and the 5 full-time employees (as explained in the Board Minutes) to ORH yet?
  7. When will the results of the Master Plan be released?
  8. Does anyone care at the airport about the deplorable conditions at ORH that have been reported on this blog at some of the City owned facilites?

February 12, 2007

Avports

Web Site

Currently, AvPorts provides airport management services at Albany International Airport (ALB), Atlantic City International Airport (ACY), Republic Airport (FRG), Teterboro Airport (TEB), Tweed New Haven Regional Airport (HVN) and Westchester County Airport (HPN). All of the airports managed under contracts with AvPorts are certificated by the federal government under Federal Aviation Administration (FAA) safety standards.

Stewart Again

Mid Hudson News Story, please note the section in bold about a company to run the airport.. Why don't we add AvPorts to the list of potential companies to run ORH under a long-term lease:

Stewart-Port deal firms up

Stewart Airport – The Port Authority of New York and New Jersey any day now hopes to be signing its deal with National Express to buy the remaining 93 years on the lease to operate Stewart Airport in Newburgh. When the Port announced its plans last month, it said the deal should be signed by mid-February.

The bi-state agency also said it would name a company to run the airport for it on an interim basis until a more long-term selection could be made. While the Port said no company has been chosen yet, industry sources point to AvPorts as the leading contender. Based in Baltimore, Maryland, the company is no stranger to the northeast US area.

It currently manages Albany International Airport, Atlantic City Airport, Republic Airport on Long Island, Teterboro Airport in New Jersey – another Port Authority-owned airport, Tweed New Haven Airport, Westchester County Airport and the 34th Street Metroport in Manhattan.

A New Jersey Assembly committee last week approved the purchase of the airport; the whole Garden State legislature and governor must approve the deal, which is not expected to be a problem since Stewart is being groomed as a reliever airport for the three metro passenger jetports.

The Port Authority is planning to take over Stewart in early November.


February 10, 2007

TF Green Buying ORH

Besides MassPort, we should definately talk to the authorities that run Bradley, TF Green and Manchester. As I have said before look no further then Stewart and the steps that are being taken there. Here is a part of the story from the Times Union:


TRENTON, N.J. -- New Jersey moved closer on Thursday to allowing the Port Authority of New York and New Jersey to buy Stewart International Airport in Newburgh to help ease congestion in the region's skies and airports. A Senate transportation panel approved changing New Jersey law to let the Port Authority to enter into a $78.5 million, 93-year lease of the airport 60 miles north of New York.

It was the first legislative approval for the plan, which still requires consent from the full Assembly, Senate and Gov. Jon S. Corzine.The Port Authority hopes to take over operations at Stewart by October. About 300,000 passengers used Stewart last year, but transportation officials said it could handle 1.5 million and ease pressure on LaGuardia, John F. Kennedy International and Newark Liberty International airports. Those airports handled more than 100 million passengers last year, a total projected to reach 150 million by 2025.

The legislation would match New Jersey law with New York law to authorize the Port Authority to buy or build two new airports -- one in each state -- outside the agency's district, which extends for a 25-mile radius from the Statue of Liberty. Bill sponsor Sen. Paul Sarlo, D-Bergen, mentioned the Atlantic City International Airport and Trenton Mercer Airport as potential purchases by the Port Authority in New Jersey, but Shawn K. Laurenti, the Port Authority's government and community relations director, said nothing is imminent.

"I don't think there's any interest in pursuing an airport in New Jersey at all," Laurenti said.
Sen. Henry P. McNamara was unconvinced that New Jersey won't need another airport and expressed concern about giving the Port Authority the ability to establish one.
"If New Jersey is going to continue to grow, the need is going to happen here also to where you're going to need something to alleviate Newark," said McNamara, R-Bergen.
Sarlo said he at least hopes using Stewart will ease congestion at Bergen County's Teterboro Airport, which has become one of the nation's busiest small airfields. Teterboro Airport has been a longtime sore spot for neighboring residents, who have complained of aircraft noise, exhaust odors and incidents involving planes running off runways.

February 09, 2007

Tampa

Too bad Allegiant was not flying to St Pete's. Sanford was more a vaction destination for the kids, while Tampa is perfect for the adults. Great alternative to Myrtle Beach. Tons of golf courses, better weather, many restaurants, etc. Another missed opportunity for ORH.

February 08, 2007

Tampa

I am off the for the week-end to do a little golfing in Tampa with some college friends. I can not help but think how nice it would have been to fly Allegiant to St Pete's, but good thing we did not waste our Small Community Air Service Grant monies on an airline. Wonder if we are holding some of the monies after three years, if we have to give it back? Bet you the consultants can come up with a bill for the balance.

Instead of flying out of ORH, I am up at 3:00AM for a drive to Boston. I will try to post some blogs.

February 07, 2007

IMG Update

Checking back on a 1/2/7 blog in regards to IMG there had been an update for about three months in regards to IMG that read:

"Additionally, IMG is preparing route analysis for two prospective airlines. City staff are working closely with MassPort officials to review and make additional recommendations on these packages. Following the finalization of the packages, MassPort and the City will meet with representatives of the targeted airliness to determine interest in locating at the airport."


Tonight here is the IMG update from City Council minutes:

"IMG will continue to provide the City with analysis of potential carriers and the creation of specific marketing packages and strategies for those identified airlines. The City and Massport are focusing efforts on identifying and recruiting airlines that employ more efficient aircraft and service popular destinations which were identified through the locan and FAA-conducted surveys of passengers preferences."

  1. Were the two packages finished?
  2. Were the two airlines met with?
  3. What did they say?

February 05, 2007

National Express

The way I figure it is that National Express is going to make a hell of alot of money when the sell the remaining 93 years of their original 99 year lease to the Port Authority of New York and New Jersey. Why not call them and ask them if they want to try and do it again at ORH???

While we are at it. If the Port of New York and New Jersey is going to dish out 79$ million to buy the remaining 93 years of the lease from National Express, maybe they would want to throw a few bucks at ORH?? Airport for Sale!!! Call all the airport authorities--TF Green, Bradley and Manchester.. Lets get top dollar for ORH...

Actually I got a better idea. Lets take the money left from the Department of Transportation Small Community Air Service Grant, put together an RFP for a consultant to hold community meetings and conduct a survey to decide what we should do.

February 04, 2007

Today's Editorial

You got to laugh, here it is. . Can you say its a done deal. Wonder if the Airport Board Minutes has anything on this--I doubt it. Let us not forget past Editorials within the last 3 months:

  • December 12th, 2006, regarding to the Master Plans. "The action plan, scheduled to be issued in its final form early next year, charts a realistic course toward realizing the airport’s potential in the region’s air transportation network."
  • November 28th, 2006, regarding the Land RFP. "The initial request for development proposals is a significant step in the right direction."
Evidently the Land RFP was not a step in the right direction and the Master Plan realistic course toward realizing the airport's potential was not so realistic. Stewart lease is worth 79 million, ORH lease will be about 79 million short of that.

120,000

For those anonymous bloggers, who suggest the blog consists of 3 or 4 people, we just passed the 120,000 page download yesterday. Thats alot of downloads for 3 or 4 people.

February 03, 2007

Putting the Airport out to Bid

Ten years ago Stewart and Worcester were pretty similar airports. Today we read about Stewart and leases for 79 million, while Worcester bleeds money and will be leased to MassPort for what I guess will be a nominal amount. What was the difference? Management!!! In 1998, the State of New York privatized Stewart and leased it to National Express. You can read about it on the website under the privatization tab.

Over the past two years on this blog, I do not know how many times we have said SELL ORH and that the City of Worcester knows how to run an airport no more then it knows how to run a Civic Center (or a hospital). Now it seems everyone agrees with us. Unlike others, who try to rewrite history, look at #13 in our list of recommendations:

13) Invite airport management companies to Worcester and review the possibility of putting together an RFP whereby we lease the entire airport to a private management company.

In fact Bob Nemeth stopped by my office last January, 2005, after the web site went live on the airport and we discussed various matters concerning the airport. I told him that we should look into privatization of ORH like Stewart had done with National Express (there is a section on the web site about it towards the bottom). Mr Nemeth did not know what either privatization or wifi (another recommendation) was, so I had to explain both to him. In the end, he told me to submit my idea to the airport commission for their review.

Take a look at the Board Minutes and hit the February,2005 minutes, check out number 7 under new business. The Airport Board minutes says thanks for the recommendation but that IMG was looking into it already. What did IMG say about privatization in their $100,000 report?? Answer: Nobody would be interested in the airport so we should forget about recommendation #13,

My question has been all along is how can IMG say that without trying? IMG , by the way, are the same guys we have paid an additional $100,000 to recruit and retain a commercial airline--how they doing on this?? As Harry Tembenis, Jahn and many others have suggested there are possibilities and what do we have to lose to try? Is there not a fiduciary responsibility to get the highest possible return for the tax-payers?

Instead of attempting to sell the airport (long-term lease or outright sale), we spent monies on consultants and surveys that one of our own airport board members, Mr Nemeth, now says was a waste of time and is getting us nowhere. Think about it, had you ever heard of Stewart International Airport in Newburgh, New York, before reading this blog?? I did not, but now you read about a 79 million dollar lease from the Port of New York??

Lets hope Bob Nemeth has a part 3 to his recent story on the airport, as to why we never looked aggressively for a buyer other then MassPort. Eventually when we lease ORH for a nominal amount to MassPort, will this be fair market value??? Don't get me wrong, I personally believe that MassPort will be a huge improvement, but what did we leave on the table??

Stewart Deal

Entire story

Here are parts:

The board of the Port Authority of New York and New Jersey authorized a $78.5 million deal to assume a 93-year lease of Stewart International Airport in Newburgh, 60 miles north of the city. "We can turn that sleepy, underutilized facility into a dynamic transportation hub that will allow us to meet the incredible growth and demand for air travel," said the Port Authority's executive director, Anthony Shorris.

The Port Authority, which would explore adding more parking and a new passenger terminal, is expected to take over operations by October, pending the approval of both the Federal Aviation Administration and the state's transportation department......





JetBlue Airways Corp. recently decided it would begin daily nonstop flights to Florida from Stewart. A competitor, AirTran Airways, also has launched service to Georgia and Florida from Newburgh, and has been flying to similar destinations from Westchester County.

Gov. Eliot Spitzer gave the Stewart plan a high profile by mentioning it in his first State of the State speech earlier this month, and he reiterated his support for expanding the airport in a statement this week.

"We will continue to make major investments at JFK, Newark and LaGuardia, but eventually we are simply going to run out of room. Stewart International Airport will provide much-needed relief for our three major airports, greatly reduce delays and help us prepare for inevitable population and passenger growth," the governor said.

Unlike other New York airports, hemmed in by thick urban development, Stewart has plenty of room to expand. It sits on 2,200 acres, compared to LaGuardia's 680, Kennedy's 4,930 and Newark's 2,000.

February 02, 2007

Stewart International

Harry Tembenis just sent me a story about Bradley and how Stewart is starting to provide some real competition. Stewart is example of another secondary airport, like Rockford that has been able to succeed. In recent months they have landed JetBlue and Airtran, along with the other three airlines that they already had.

Who owns Stewart? Stewart International Airport is the nation's first privatized commercial airport and operates under a 99-year lease agreement with the New York State Department of Transportation. National Express Group operates Stewart International Airport and is the United State's subsidiary of the National Express Group, PLC, in the United Kingdom. Click here to go to the National Express Group website.

The most interesting part of the story that Harry sent me is the following:

The Port Authority of New York and New Jersey last week announced a $79 million deal for a long-term lease at Stewart, which served 300,000 passengers last year. The authority wants to expand it to relieve congestion at JFK, LaGuardia and Newark Liberty International airports, and to promote economic development of the Hudson River Valley.

The authority expects to assume control of the former Air Force base by October, pending closure of the deal and bureaucratic approvals.A new exit off I-84 leading directly to the airport - already under construction - is expected to open in September. The airport is also seeking money to build an international terminal.The authority has not defined a timeline or a budget for Stewart's expansion, but says it would accommodate private jet operators, cargo haulers and passenger airlines.


$79 Million when an airport is run successfully!!! Who knows maybe the authority that owns Bradley or TF Green would see the value of ORH, but again we will never know??

SkyValue

Here is how we could have utilized some of the DOT grant monies to help Allegiant, by sudsidizing flights, when they had low bookings versus spending the monies on IMG. Story on SkyValue from the Post-Trib:

There are few items you could buy for $1 these days: a candy bar, fries or a burger from a special menu at a fast-food restaurant. But on Sunday and Wednesday, you can add a flight from Gary to several sunny places in the United States as well.

In an effort to increase passengers flying on SkyValue USA, a $1 one-way fare is being offered on flights to Mesa, Ariz., Las Vegas, St. Petersburg and Orlando for flights leaving Gary/Chicago International Airport either Sunday or Wednesday, Feb. 7. The $1 fare is also good for flights returning from those destinations to Gary on Sunday or Feb. 7.

However, the $1 price tag is based on the purchase of a round-trip ticket. Return flights begin at $79, but could reach nearly $200 depending on the return date. Gabrielle Griswold, senior executive vice president of SkyValue, said the promotion is expected to be repeated throughout the year as the airline continues to build a strong customer base.

"We've had tremendous response, and people are very pleased with the regional airports," she said, adding that the $1 fares will be offered sporadically when flights are expected to have few passengers. SkyValue is attempting to lure customers from Northwest Indiana and Chicago, who typically turn first to Midway Airport, said SkyValueCEO Darrell Richardson in a prepared statement.

"Repeated business and bookings are so strong, we know if you try us, you'll be back," Richardson said. "Our special promotion is to attract a larger audience of passengers who may not be aware of SkyValue's affordable air service and the convenience of the Gary/Chicago Airport as an alternative to Midway and O'Hare."

February 01, 2007

WoMag Story on Land RFP

http://www.worcestermag.com/archives/2007/02-01-07/city_desk.html

Why the Land RFP Failed.


Most of this is from a prior post on December 1st when I guessed at most we would get was one bidder. I was wrong--we got none, but here goes again.

Don't get it.... We are putting out an RFP (Request for Proposal) that:


  • Asking someone else to build a first class General/Corporate Aviation facility on a 4.5 acre parcel owned by ORH
  • Proposer does not own property but pays a ground lease of approximately 48,000 per year for 20 years, with an option to renew the lease for 10 years
  • In addition to the rent, the successful proposer will have to pay a portion of their collected parking fees and fuel flowage fees to the City of Worcester not to mention of portion of labor, parts and restaurant sales
  • During course of the lease any sub-letting of the successful proposer needs to be approved by the airport commission
I really do not see how any can recoup their investment in a facility like this with these terms. Honestly will be surprised if their is many actual proposals requiring a $10,000 deposit submitted.



Here is an addition:

How can we expect anyone to invest in this when the future management structure of ORH 149 days from now (July 1st) is not known. For now we should just hold off on any RFP until the management is finalized.